Have 3,771 Sq Ft home with 5 bedrooms, 3 Full baths, computer room, excercise room, play room, grate room, nook formal living Rm, Office, family room

Asked by Mcarney, Moreno Valley, CA Fri Mar 26, 2010

and formal dining room. Selling. An FYI appraisal came back @ $250K (Moreno Valley, CA). Appraisers used comps from most devastated area; 1 comp picture shows a 2 ft weed in front of garage and stained drive. Looked at and found 2 ft wee dis now a 'tree' (higher than roof and 3 in diam trunk); no adjustments; highest comp of 270K got $10K more on condition? Looked and found (as example) all weeds in back yard and weeds in grass in front. Our back has manicured Italian eccelctic with Italian spruce, nandina, jasmine, foxtail, raised purgola patio, retaining wall/planter, dual level, extra high alumawood patio, firepit with raised planter/bench seat, walkways. Appraiser adjustment? NONE. Another comp - 1800 Sq ft lot size smaller (25.7%). No adjustment. Gave our market calue 20K lower than $270K prop and $5K less than cost approach!! Anything I can do?

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Jesse Madison, Agent, Rancho Santa Margarita, CA
Sat Aug 28, 2010
Mcarney,
Is this a short sale? Is this the banks appraisal or the buyers appraisal. If it is a buyers lenders appraisal maybe you can get a 2nd appraisal and contest the first one. Be sure to furnish your own comps and show why the first appraisal is flawed. Also find out where the appraiser is from. If they are not local maybe they do not know the subtle differences in value between different areas. Be sure that all comps are within 1 mile of the subject property.

Your agent should be able to put together a BPO or CMA with supporting comps and help make your case.

Best regards,
Jesse Madison
Madison Realty
0 votes
Keith Sorem, Agent, Glendale, CA
Fri Mar 26, 2010
Did your Realtor meet with the appraiser and discuss the comps they would use?

I would definitely have your Realtor talk with the buyer's lender and ask for an appeal. Document with comps that support your price.
0 votes
x, , Hawaii
Fri Mar 26, 2010
You may be able contest the appraisal, give your reasons why (I wouldn't name the plants), and ask for a review. Or you can get (pay for) another appraisal from the lender's approved list.. Make sure the lender is using an appraiser that is a local company and has experience in Moreno Valley.

Nowadays appraisers are pretty right on with their appraisals but sometimes they do make mistakes. What does your Realtor have to say? Does the appraisal make sense to him/her? If there are better comparable homes than the ones they used your agent should be able to help you by presenting your case to the appraisal company.

It seems that a few of the things you have mentioned will not have much of an effect on the appraisal value. It sounds like the nice condition of your house and yard may make your house a first choice for a buyer but may not have much of an impact on the value. Desirability (which is very important) yes. Value not so much.

Good Luck to you.
0 votes
Tisza Major-…, Agent, Upland, CA
Fri Mar 26, 2010
Hi!

Thanks for stopping by. This is a tough one because appraisals are such integral parts of a real estate transaction and yet what you are really paying for is one persons educated (ostensibly VERY educated :-) opinion but the truth of the matter is that you don't really find out what true market value is until the property is put forth on the open market and the ready, willing a able buyer's tell you via their offer, or lack of offer, what they are willing to pay.

As for the appraisal you already received, you can contact the appraiser and ask for justification on the result and if you really believe that things are seriously out of whack, there is a mechanism in place to lodge a complaint. I don't have that info at my fingertips but if you need it, I can see about getting it for you.

That being said, looking at the situation from the other side of the coin, if the properties that were used to comp your home are in your immediate area then they are indeed impacting the value of your home. This is another reason why when a home goes into Foreclosure and is vacated it is so critically important for it to be maintained and for it to find another family to live in it and love it as quickly as possible.

Houses are really a bit like apples and when one goes bad the others nearest it are now several steps closer to following in its footsteps and "going bad" (so to speak) too.

You say that you are selling your home, have you already listed your home with an agent and if so, what did the CMA (Comparative Market Analysis) that the agent should have done for you as part of their listing presentation indicate? A good agent should have their finger on the pulse of the current market, should also know what factors are influencing value there and should also be familiar with how different neighborhoods are potentially viewed by the buyer.

They are not appraisers (nor am I) and their opinion should not be and can not be used in place of that of a qualified appraiser, but if the appraiser in question is not experienced and is not also a local expert then problems can arise.

One thing you might be able to do in future, to try to help ensure (not guarantee...) that you don't have this happen when the appraisal is being done for the potential buyer's lender is to have your agent pull comparable properties for your home to provide to an appraiser who may very well be from outside, and in most cases well outside the area (especially now owing to the ruling about appraiser's having to be chosen based upon their management company alone and not their knowledge or experience) with the data that they will need to get a more accurate picture of your homes value as it stacks up apples-to-apples against the others it should be compared against.

I hope that helped. If you have any additional questions, or need any further information, please don't hesitate to ask!

Take care and have a wonderful day!

Tisza Major-Posner, Realtor, SFR*, RREOBS** DRE#01784679, IVPG Realty (909) 837-8922
* National Association of Realtors Certified Short Sale and Foreclosure Resource Specialist
** California Association of Realtors Certified Residential REO Buyer Specialist
Web Reference:  http://Route66Living.com
0 votes
Matthew Bart…, Agent, Glendora, CA
Fri Mar 26, 2010
Hi Mcarney,

Have you spoken with your Realtor about this? If your Realtor is able to submit comparibles from your area that are current and match to your homes features and benifits then you may challenge the appraisal and ask for a correction in value. There are no guarantess, thou it would be worth the effort. Good luck!

Matt
0 votes
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